Burgos Struggles with Underground Economy Despite Anti-Fraud Measures
Burgos faces ongoing challenges with its underground economy despite recent regulatory measures.
Key Points
- • The underground economy in Burgos remains significant, particularly in private employment and informal exchanges.
- • Estimates suggest 20-25% of Spain's GDP is underground, with 1.8 to 2.6 billion euros annually in Burgos.
- • The Anti-Fraud Law has helped reduce black market activities among businesses but not private individuals.
- • Stringent measures like cash payment bans and standardized accounting software aim to further control the underground economy.
The underground economy in Burgos continues to be a pressing issue, with significant activity in the spheres of private employment and informal exchanges, according to recent reports. Although fiscal controls have tightened since the introduction of the Anti-Fraud Law in July 2021, experts indicate that specific sectors, particularly among private individuals, still engage in unreported work.
Estimates reveal that the underground economy accounts for approximately 20-25% of Spain's overall GDP, positioning the country among the most affected in Europe, alongside Greece and Italy. For Burgos specifically, this suggests an annual underground circulation of between 1.8 and 2.6 billion euros. While the presence of black market activities is reportedly declining in businesses due to stricter regulatory measures, the trend appears to be slightly increasing among private individuals.
Key measures under the Anti-Fraud Law include a cash payment ban for transactions over 1,000 euros and the establishment of tax reference values for real estate, aimed at increasing transparency. Despite these measures, a culture of tax and labor fraud persists.
Economist Adolfo Tomé noted improvements in regulatory adherence, particularly among large businesses, indicating that significant strides have been made in the compliance culture. Moreover, all banking operations now face enhanced anti-fraud scrutiny, including verification of lottery winners against their respective tax identities.
The overall sentiment from experts and officials is that while advancements have been made, ongoing efforts are crucial to control the underground economy's persistent grip in Burgos.